GE Continues Energy Sector Expansion, To Buy Lufkin

General Electric (GE) will buy Lufkin Industries (LUFK) for $2.98 billion, according to a company announcement Monday. The conglomerate continues to focus on expanding its presence in the energy and other high-growth sectors.

The Texas-based Lufkin produces artificial lift products that pump oil and natural gas to the surface of the drilling wells.

"The artificial lift segment is at the heart of critical changes that are helping producers maximize well potential, which translates into increased output at lower operational cost," Daniel Heintzelman, CEO of GE Oil & Gas said in the release.

The deal, expected to close in June, values Lufkin at $88.50 per share. Lufkin shares vaulted 38% on the stock market today. GE shares were slightly down.

Oil & Gas is GE's fastest-growing business as natgas and oil production in America continues to boom. U.S. oil output is expected to top Saudi Arabia's in 2020, according to the International Energy Agency.

GE has spent more than $11 billion in the last six years to expand its energy business. The energy segment accounts for 10% of GE's total revenue. So it's no surprise the Lufkin deal is GE's first major acquisition since the conglomerate sold its stake in NBC Universal in February. GE sees the oil pump market growing 12% to 13% each year for the next 10 years and the conglomerate wants to make Lufkin's products available abroad.

FMC Technologies (FTI), which produces wellhead systems, high pressure fluid control devices and other equipment, leads the group of sizable companies with a Composite Rating of 89. Exterran Holdings (EXH) is No. 2 with an 87 rating.

General Electric (GE) will buy Lufkin Industries (LUFK) for $2.98 billion, according to a company announcement Monday. The conglomerate continues to focus on expanding its presence in the energy and other high-growth sectors.

The Texas-based Lufkin produces artificial lift products that pump oil and natural gas to the surface of the drilling wells.

"The artificial lift segment is at the heart of critical changes that are helping producers maximize well potential, which translates into increased output at lower operational cost," Daniel Heintzelman, CEO of GE Oil & Gas said in the release.

The deal, expected to close in June, values Lufkin at $88.50 per share. Lufkin shares vaulted 38% on the stock market today. GE shares were slightly down.

Oil & Gas is GE's fastest-growing business as natgas and oil production in America continues to boom. U.S. oil output is expected to top Saudi Arabia's in 2020, according to the International Energy Agency.

GE has spent more than $11 billion in the last six years to expand its energy business. The energy segment accounts for 10% of GE's total revenue. So it's no surprise the Lufkin deal is GE's first major acquisition since the conglomerate sold its stake in NBC Universal in February. GE sees the oil pump market growing 12% to 13% each year for the next 10 years and the conglomerate wants to make Lufkin's products available abroad.

FMC Technologies (FTI), which produces wellhead systems, high pressure fluid control devices and other equipment, leads the group of sizable companies with a Composite Rating of 89. Exterran Holdings (EXH) is No. 2 with an 87 rating.

A wireless, battery-free explosive-detecting device about the size of a postage stamp may one day save lives. The prototype device developed by GE (NYSE:GE) Global Research with the federal Technical Support Working Group could be attached to packages, cargo containers and even buildings. The radio ...

General Electric's (NYSE:GE) $16.9 bil acquisition offer for French multinational Alstom's power business reportedly is likely to face a full-scale investigation by European Union antitrust regulators. The European Commission may scrutinize the proposal with an eye to competitive concerns and may ...

General Electric's (NYSE:GE) acquisition offer for French multinational Alstom's power business reportedly is likely to face a full-scale investigation by European Union antitrust regulators. Last June, GE announced that it had won approval from Alstom's board for the all-cash offer to buy the ...

Ronald Reagan thought big — especially in the presidential arena. As the 40th president, he revitalized America's economy and sped the end of the Cold War. His big-picture approach was on full display as he ran for the office in 1980. Accepting the Republican nomination, he told the ...

02/13/2015 02:04 PM ET

More Business Articles:

Macau's gambling revenue tumbled almost 49% as China's anti-corruption campaign continued and high rollers took their money elsewhere in February. But the timing of the Lunar New Year also impacted results, says one analyst. Monthly gross revenue sank 48.6% to 19.5 billion patacas, or $2.4 billion, ...

Dick's Sporting Goods (NYSE:DKS) scored points with investors after the retailer posted fourth-quarter profits and sales that crushed views on Tuesday morning, sending Dick's stock nearly 4% higher in early trading in the stock market today. By early afternoon, shares were trading up just about ...

Citigroup (NYSE:C) agreed to sell its OneMain Financial unit to Springleaf Holdings for $4.25 billion, a major step in the New York-based bank's effort to slim down in the wake of the financial crisis. OneMain provides personal loans for consumers who need to pay unexpected bills or buy big-ticket ...

Shares of AutoZone (NYSE:AZO) moved to a new all-time high on the stock market today after the auto parts retailer topped quarterly sales and earnings estimates, helped by favorable weather conditions, low gas prices and a lower-than-expected tax rate. AutoZone shares climbed as high as 674.84, a ...

Select market data is provided by Interactive Data Corp. Real Time Services. Price and Volume data is delayed 20 minutes unless otherwise noted, is believed accurate but is not warranted or guaranteed by Interactive Data Corp. Real Time Services and is subject to Interactive Data Corp. Real Time Services terms. All times are Eastern United States. *Reflects real-time index prices.